Bipartisan legislation offering federal film tax credit to lure production companies that have moved their operations overseas back to the United States was introduced in both houses of Congress on Thursday, Sept. 24, with Los Angeles County lawmakers projecting optimism that the bill could soon become law.<\/p>\n
The so-called Motion Picture, Television, and Entertainment Revitalization Act<\/a> would provide a 20% federal tax credit to film and television productions that spend at least $1 million and where at least 75% of the filming takes place within the U.S.<\/p>\n Companies may also be eligible for 5% bonus credits, up to a maximum of 30% tax credit, for productions in rural opportunity zones or disaster-impacted areas or for independent productions, among other factors.<\/p>\n California lawmakers sponsoring the bill noted Thursday that the legislation has bipartisan support in both houses of Congress and that even President Donald Trump<\/a> has called for a federal tax incentive to bring more film and television projects back to the U.S.<\/p>\n This rare show of solidarity signals a strong probability that the bill could get passed shortly after the midterm elections, the lawmakers said.<\/p>\n U.S. Sen. Adam Schiff also noted that he strategized with actor Jon Voight, Trump\u2019s \u201cspecial ambassador\u201d to Hollywood, and with Spencer Pratt, a reality TV star who Trump had said he wanted to see \u201cdo well\u201d during his unsuccessful bid to become L.A.\u2019s mayor<\/a>.<\/p>\n \u201cSo here you have the (Trump) administration, Democrats in Congress, Republicans in Congress, outside allies associated with both political parties, all pulling in the same direction,\u201d Schiff said during a call with reporters.<\/p>\n \u201cIt is rare, and therefore all the more important that we take advantage of this opportunity,\u201d Schiff added as he and others spoke of seizing the momentum to pass the proposed legislation.<\/p>\n The bill is co-sponsored by U.S. Sen. Tim Scott, a Republican from South Carolina.<\/p>\n On the House side, bill sponsors include Reps. Laura Friedman<\/a>, D-Glendale; Judy Chu<\/a>, D-Monterey Park; and Linda S\u00e1nchez<\/a>, D-Whittier. Other sponsors include Reps. Nathaniel Moran of Texas, Brian Jack of Georgia, David Kustoff of Tennessee and Mike Carey of Ohio \u2013 all Republicans.<\/p>\n Schiff often spars with Trump, but on the issue of how to make the U.S. competitive to the film industry, both seem to agree on federal tax incentives as one solution.<\/p>\n The president, in a Truth Social post<\/a> last month, encouraged Republicans and Democrats to get together to craft legislation to save the movie and television industry.<\/p>\n \u201cCongress should approve, immediately, a Federal Production Incentive to create Entertainment Jobs in America. It can be done quickly, accurately, efficiently and, importantly, will benefit ALL of America,\u201d Trump wrote.<\/p>\n Friedman, who represents Hollywood and Burbank, where a number of studios are located, said the U.S. is the only country with major film and television production that doesn\u2019t offer a national incentive to the industry.<\/p>\n Although individual states, including California<\/a>, may offer tax credits or other incentives, \u201cno single state is going to be able to outbid a foreign government, and that\u2019s why this effort has got to be a national effort,\u201d Friedman said.<\/p>\n Half of all film and scripted series were shot outside the U.S. last year, and between 2022 and 2024, Los Angeles lost more than 42,000 jobs across the entertainment industry, impacting writers, camera operators, set designers and others, Chu, who co-chairs the Congressional Creative Rights Caucus, said.<\/p>\n \u201cIt breaks my heart when I see a movie or television series that\u2019s about something in America, located supposedly in America, but where it\u2019s actually shot overseas. That is not right,\u201d she said.<\/p>\n S\u00e1nchez, a former labor attorney, said the proposed tax incentive amounts to a jobs bill to protect good-paying jobs for people who work behind the scenes, from make-up artists and carpenters to production assistants.<\/p>\n She and others also spoke about the boost to local economies and small businesses that support film productions.<\/p>\n A number of unions and associations in the film and television industry have endorsed the proposed federal tax incentive, according to the bill sponsors. These include the International Alliance of Theatrical Stage Employees (IATSE), Motion Picture Association (MPA) and Screen Actors Guild \u2013 American Federation of Television and Radio Artists (SAG-AFTRA).<\/p>\n The federal legislation is the latest in ongoing efforts by federal, state and local elected officials to save the film and television industry, especially in and around Hollywood.<\/p>\n California increased its film and television tax credit<\/a> to $750 million annually last year.<\/p>\n And locally, L.A. Mayor Karen Bass issued an executive order<\/a> last year to lower filming costs, streamline permits and keep film and television production in the city.<\/p>\n